PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
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14. PREMISES AND EQUIPMENT continued
a. Depreciation and amortization of premises and equipment charged to profit and loss amounted to Rp250,124, Rp90,869 and Rp329,732 for the eight-month period ended December 31, 2003, the
four-month period ended April 30, 2003 and the year ended December 31, 2002, respectively Note 40.
Management believes that there is no permanent impairment in the value of fixed assets as of December 31, 2003, April 30, 2003 and December 31, 2002.
b. The Merged Banks entered into a “Memoranda of Agreement on the Transfer of Assets” on July 29, 1999 with PT Pengelola Harta Tetap Mandiri PHTM, a related company owned by PT Usaha
Gedung Bank Dagang Negara and PT Bumi Daya Plaza, for the transfer of certain non-core land and buildings. As part of the restructuring of Bank Mandiri, the assets, which were mostly
comprised of non-core fixed assets of the Merged Banks, were transferred to PHTM primarily to be managed and sold, consistent with the purpose of PHTM’s establishment. These assets were
sold to PHTM for a consideration of Rp100 in full Rupiah amount each or a total nominal value of Rp64,100 in full Rupiah amount. The net book value of the land and buildings transferred to
PHTM amounted to RpNil and Rp129,685, respectively. Based on the Shareholder’s General Meeting on December 20, 2000, prior to the sale of any
assets held by PHTM, approval from Bank Mandiri’s shareholder is required and cash proceeds from the sale of assets held by PTHM will be placed in an escrow account and its use requires
approval from Bank Mandiri’s shareholder.
The transfer of these assets to PHTM is considered as a transaction between entities under common control, under SFAS No. 38 - “Accounting for Restructuring of Entities under Common
Control”. Therefore, the assets have been recognised as Other Assets - Assets Available for Sale and no gain or loss is reflected in the consolidated financial statements of Bank Mandiri, as if no
transfer of assets had taken place. Based on the Shareholder’s General Meeting on January 16, 2002, the shareholder approved the return of additional paid-up capital through the return of
Government Bonds amounting to Rp129,685 representing the loss on transfer of assets to PHTM previously recognized by Bank Mandiri at the time of recapitalization. On December 30, 2002, the
Bank returned a Government Bond with serial number FR0007 to the Government of Indonesia Note 8.
Based on notarial deeds No. 212, 213, 214, 215, 216, 217, 218 and 219 of Aulia Taufani, S.H. dated June 28, 2002, Bank Mandiri and PHTM agreed to terminate the Memorandum of
Agreement on the Transferred Assets, and decided to transfer those assets back to Bank Mandiri as of June 30, 2002.
The transfer of those assets back to Bank Mandiri is considered as a transaction between entities under common control. Accordingly, no gain or loss in relation to such transfer of assets is
reflected in the consolidated financial statements of Bank Mandiri.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
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14. PREMISES AND EQUIPMENT continued
